The Humpty Dumpty Syndrome

Despite the global euphoria that greeted Barack Obama’s landslide victory on Tuesday, U.S. stocks posted their greatest post-election decline in history — evidence that investors are now beginning to realize what we’ve been saying all along: "All the king’s horses and all the king’s men can’t put the economy together again.”

Indeed, this would have happened no matter who won the election; the torrent of global disasters was already in the pipeline, already feeding on itself, and already accelerating:

U.S. unemployment at a 14-year high … 250,000 jobs lost in October … nearly 1.2 million jobs lost so far this year … more workers now receiving unemployment benefits than at any time in a quarter century.

THIS is why Congress is already talking about throwing hundreds of billions more at this crisis. And this is also why you’d better hang onto you hat — because these massive bailouts and handouts guarantee that …

A NEW Orgy of U.S. Government
Borrowing Is Directly Ahead!

Earlier this week — even BEFORE this terrible news hit the wires — the U.S. Treasury announced that between last month and the end of the year, it will borrow a total of $550 billion — more than the entire deficit for ALL of fiscal 2008.

At the same time, Goldman Sachs analysts just announced that, to finance an $850 billion federal deficit … to buy $500 billion in bad assets … and to roll over $561 billion in maturing Treasury securities, Washington will have to borrow TWO TRILLION DOLLARS!

But we think it could be a lot more. Just look at the loans, investments and commitments that the government has ALREADY made:

$700 billion to the Troubled Asset Relief Program (TARP) rushed into law in September …

$200 billion to nationalize Fannie Mae and Freddie Mac …

$25 billion for the Big Three auto manufacturers, $29 billion for Bear Stearns, and $123 billion for AIG …

$144 billion to buy mortgage-backed securities (Part of which is included in the item above) …

$87 billion to pay back JPMorgan Chase for financing bad trades made by Lehman Brothers …

$200 billion in loans to banks under the Fed’s Reserve Term Auction Facility (TAF) …

$50 billion to support the commercial paper held by money market mutual funds — so far. (By the way, approximately $1.3 trillion worth of commercial paper would qualify, adding a huge unquantifiable liability to the U.S. government.) …

$620 billion in currency swaps with industrial nations, including aid to the Bank of Canada, Bank of England, Bank of Japan, National Bank of Denmark, European Central Bank, Bank of Norway, Reserve Bank of Australia, Bank of Sweden, and Swiss National Bank …

$120 billion in swaps for emerging markets, including the central banks of Brazil, Mexico, South Korea and Singapore …

Not including the unquantifiable liabilities, that adds up to nearly $2.7 trillion or about SEVENTEEN TIMES the size of this year’s entire economic stimulus package!

And that $2.7 trillion doesn’t even begin to address Washington’s next attempts to fight this crisis as unemployment continues to skyrocket and consumer spending continues to crash.

Just last week, we heard more calls in Congress for a second huge stimulus package in an attempt to get shell-shocked consumers to begin spending again. We saw GM, Ford and Chrysler huddling with House Speaker Nancy Pelosi to craft another huge bailout for the auto industry. And you can be sure that there will be more to come.

This reality — the fact that the greatest tidal wave of Treasury bonds in history is about to slam into the markets — means two things:

1. Plunging bond prices: Like any other investment, when the supply of bonds rises, bond prices fall. Given the mind-boggling size of this borrowing binge, we’re now staring down the barrel of one of the most devastating bond market crashes ever.

2. Huge profit potential for contrarian investors like us: Investments that soar when bond prices plunge are about to give you the opportunity to multiply your money throughout the rest of 2008 … throughout 2009 … and beyond!

In fact, this great government borrowing binge gives us not just one, but TWO opportunities to go for windfall crisis profits in the weeks and months ahead …

Years ago, unless you were a registered government bond dealer, it was impossible to profit from a bond market decline. You were not allowed to sell Treasury bonds short to profit from their decline. And later, even with the advent of Treasury-bond futures, the risk was too great.

Not any more! For the first time in history, you now can buy a simple, exchange-traded fund (ETF) that was specifically created to PROFIT from falling bond prices.

The basic principal is very simple: The more the government has to borrow, the more bond prices are likely to decline … and the more bond prices decline, the more money you stand to make!

PLUS, for the first time in history, there is ALSO an ETF now available that lets you DOUBLE your profits as bonds crater: With each $1 decline in the bond price index, you make $2!

Best of all, you can grab that huge profit potential without buying futures or options, without selling short, and with …

Simple, easy-to-trade EXCHANGE TRADED FUNDS: No exotic investments, no margin, no foreign accounts — just buy or sell ETFs in your regular broker account. If you can buy 100 shares of AT&T, you can just as easily buy 100 shares in these special ETFs, online or offline.

Low cost of entry: Ideal for investors with as little as $5,000 to invest and also for investors with $100,000 or more …

ETFs that hand you TWO dollars for every one dollar that stock or bond indexes fall: When they drop 15%, you could make 30% … when they fall 30%, you could grab 60% … and when they plunge 50%, you could double your money!

Five layers of protection to shield you from excess risk: Designed to help you minimize risk and maximize your returns, making you steadily richer every time stocks plunge …

All for just $2.46 per day: Recos designed to multiply your money every month for less than the cost of your morning coffee!

If, for example, bonds fall as much as they did in the bond market crisis of 1980, you could see gains of as much as 200% in my favorite inverse bond ETF.

Given the sheer size of this precedent-shattering borrowing spree, I personally think you’ll do much better. But even if bonds only fall half as much as they did in 1980, you could double your money in a relatively short period of time.

WINDFALL PROFIT OPPORTUNITY #2:These Inverse ETFs Can Hand YouMany MORE Doubles As Crashing Bonds Take Global Stocks to New Lows!

The fact is, if these inverse ETFs on bond prices were the only way to go for huge gains as the government’s borrowing binge unfolds, your profit potential would be enormous. But the wealth you can amass directly from sinking bond prices is only the beginning.

Your second windfall profit opportunity is with ETFs designed to profit from falling stock prices — both in the U.S. and abroad.

Heck, with just one trade this summer, these double inverse ETFs could have helped you turn $5,000 into as much as $10,335 …

Or $50,000 into $103,350 …

Or $100,000 into a whopping $206,700 …

All in just a few weeks!

On big down days in the market, you could make those kinds of gains in just a few HOURS! But I don’t stop with just helping you go for huge gains on single days: My Crisis Opportunity ETF Trader is designed to help you COMPOUND your gains — month after month — as long as this crisis lasts!

And in this super-volatile environment, only inverse ETFs can make those kinds of gains possible — all in a regular brokerage account, even an IRA!

Even last summer — between May 15 and July 15 — when stocks were far less volatile than they are now, inverse ETFs could have handed you gains of 30.9% … 46.1% … up to 106.7%.

Thanks to these inverse ETFs, you could have banked …

A healthy 30.9% gain between June 5 and July 15 as the technology sector declined …

An impressive 37.2% gain between June 5 and July 11 as the semiconductor sector fell …

A tidy 37.7% gain between May 15 and July 15 as the consumer services sector dropped …

A tasty 46.1% gain between June 5 and July 15 as the real estate sector plunged, and …

A whopping 106.7% gain — more than a DOUBLE — between May 15 and July 15 as the financial sector cratered.

And more recently — as the markets became more volatile in September and October, these inverse ETFs could have handed you …

A 49.6% gain in just 14 days as the semiconductor sector declined between October 1 and October 15 …

A 61.0% gain in just 15 days as the technology sector fell between September 25 and October 10 …

An 89.13% gain in just 19 days as the real estate sector dropped between September 26 and October 15 …

An 89.6% gain in just 19 days as the consumer services sector plunged between September 26 and October 15, and …

An 89.9% gain in just eight days as the financial sector cratered between October 1 and October 9!

Unfortunately, you can’t go back in time to grab those gains and neither can I. But it’s crucial to understand two things: First, in each case, your money would only have been at risk for a brief time, and second, over time, these kinds of short-term gains could easily multiply your money three times … four times … even five times over!

And now, with soaring interest rates, global stock markets are setting themselves up to get crushed again, and my favorite inverse ETFs on global stock markets could give you even greater profits in a shorter period of time!

If history proves anything, it’s that the ONLY way to build wealth consistently over the long haul is to avoid excessive risk like the plague. Doing everything I can to limit any losses is the only way to compound your profits over time and to turn a molehill of money into a Mount Everest of money.

1. No Margin: I never, NEVER, recommend using margin accounts or borrowed money. So you’re never exposed to the high risk of shorting or speculating in any leveraged futures or options.

2. You’ll Never Have All Your Eggs in One Basket: Because I use exchange traded funds, your investment is always spread out over a basket of stocks or bonds in each fund. Plus, my strategy is to own more than one ETF at all times to further diversify your portfolio.

3. You’ll Never Get Locked in to a Buy-and-Hold Strategy: Crisis Opportunity ETF Trader is always flexible and nimble — ready to get you into a position or to take your money off the table quickly. That’s a critical risk-protection feature in today’s volatile market.

4. I Use Every Possible Tool to Keep You Where The Most Profitable Action Is: I use every cutting-edge fundamental and technical tool available to focus your investment on the sectors that I believe are most likely to suffer the greatest declines — and to get you to the sidelines when the time is right.

5. I Designed Crisis Opportunity ETF Trader to Cut Any Losses Short while Letting Your Profits RUN: Because your money is only exposed for short bursts of time, there’s little risk that you’ll be in a losing investment for more than a few days.

Plus, I Designed Crisis Opportunity ETF Trader To Give You SIX MORE Huge Advantages …

I named this service “Crisis Opportunity ETF Trader” because I believe that inside every crisis, there’s an opportunity. And I also believe that, since this is the greatest economic crisis since the 1930s, we now have the opportunity to go for the greatest profits we’ve seen in nearly eight decades.

And even beyond the remarkable profit potential it gives you — the very real potential to multiply your money many times over — I’ve designed Crisis Opportunity ETF Trader to give you six more strategic advantages:

1. You can start with limited capital: Because most of these ETFs go for as little as $10 or $20 per share, you don’t need to already be rich to go for gains that could make you rich.

That means it’s ideal for investors with as little as $5,000 to invest and also for investors with $100,000 or more!

2. There’s nothing to learn: Just follow the plain-English trading signals two to three times a month.

3. No new accounts to open: You just follow my trading instructions in your regular brokerage account!

4. It’s the soul of convenience: Just check your e-mail each weekday for instructions. When you get a signal, just make the trade.

5. It’s easy to follow: In each trading alert, I tell you what to buy … when to buy it … what you should pay … and I even give you my profit target for each trade.

And I do the same when it’s time to sell. You can execute each trade online or simply by reading the trading instructions to your broker.

6. You’ll be delighted with the profits you earn, or it’s FREE: No one can guarantee profits, but you must be delighted with the money Crisis Opportunity ETF Trader makes you, or cancel for a full refund within the first 60 days. In addition, you can cancel at any time for a pro-rated refund on the balance of your membership.

Your Complimentary Quick Start GuideWill Have You Going for Huge Gains in No Time

How Crisis Opportunity ETF Trader is ideally suited to help you grow your wealth when stocks and bonds plunge — and ALSO to help you keep your money growing even during bear market rallies.

How I identify sectors that are most likely to crater as bonds crash and interest rates soar.

My six favorite ETFs that are designed to profit from falling foreign stocks. These ETFs are created in the U.S. for U.S. investors. And they trade on U.S. stock exchanges. But they are strictly designed to profit from FOREIGN stock market declines.

The case against traditional investment strategies: How falling sectors can devastate the portfolios of most investors while multiplying the wealth of those who use inverse ETFs.

An IRS-qualified strategy that allows your profits to compound without the drag of taxes, thereby helping your money to grow even faster.

How Crisis Opportunity ETF Trader is designed to cut your risk by helping you take your profits when the time is right — and cut your losses short by moving you out in the trickiest of times.

Why I consider the Crisis Opportunity ETF Trader approach to be one of the most practical and reliable ways to build wealth.

A comprehensive description of the signals you’ll be receiving — and step-by-step instructions on what to do with each one.

How to make sure you can reap 100% of the service’s profit potential in just a few minutes per week.

And much, much more!

Membership is less than ONE-FIFTH of what others pay for my trading signals — less than the cost of your morning coffee!

As you probably know by now, we offer many specialized trading services to our subscribers. My Crisis Opportunity options service, in particular, sells for $5,000 per year and many have just paid precisely that much to join it.

But I don’t want you to have to pay that much. I don’t even want you to pay half that much.

If you sign up during this special Introductory Period, you’ll save FOUR-FIFTHS of that cost and get all of my Crisis Opportunity ETF Trader signals for just $995 per year. That’s just $2.73 per day; less than the cost of a single gallon of gasoline or a cup of Starbucks coffee.

Looking to save even more? Great: Sign up for two years for just $1,795! That brings your daily cost all the way down to $2.46 per day!

Plus, when you join Crisis Opportunity ETF Trader, you’ll take advantage of our convenient automatic payment plan. We’ll automatically charge your credit card each time your subscription is about to expire. You’ll never have to worry about renewal notices or missing a single issue.

You get specific buy-sell instructions on the brand new ETFs that are designed to help you profit handsomely when bond markets crash AND when the deadly combination of this historic crisis plus soaring interest rates crushes stock prices …

You get a simpler way to USE this crisis to go for huge gains even while investors all over the world are losing their shirts …

You get trading signals designed to hand you consistent gains that can quickly compound over time; turning a few thousand dollars into many times that much …

You get five ways to cut your risk … to cut any losses short … and to let your profits run …

You get the Crisis Opportunity ETF Trader Quick Start Guide valued at $149 to get you off to a fast start …

You save up to $2,585 by joining me during this special Introductory Period and get my signals for as little as $2.46 per day — less than what you pay for a single cup of Starbucks coffee …

Your membership is fully guaranteed: You must be delighted with the profits you make or just cancel anytime in your first 60 days for a full refund or anytime thereafter for a refund on the remaining portion of your membership.

The toll free number is 800-393-1706 (Overseas: 1-561-627-3300).

Be sure to activate your membership now!

Yours for crisis profits,Mike Larson

Special Introductory Discount Certificate

• Save up to $2,585 • 100% Money-Back Membership Guarantee

YES, Mike! I want to USE this crisis to pile up gains of 46.1% … 89.9% … 106.7% and MORE as stock and bond prices crash — and even in bear market rallies.

And thank you for making this opportunity available to me at less than ONE-FIFTH the cost of your other Crisis Opportunity service! Please accept my membership as indicated below.

I understand that my membership is fully guaranteed: Although losses are always possible with any trading strategy, I must be thrilled with Crisis Opportunity ETF Trader or I can cancel any time in my first 60 days for a full refund, or anytime thereafter for a refund on the unused portion of my membership. In either case, everything I’ve received in the meantime — my copy of Crisis Opportunity ETF Trader Quick Start Guide … all my special reports, research, recos and more — is mine to keep without cost or obligation.

I’m also taking advantage of your convenient automatic payment plan: To save me time and inconvenience, you will automatically renew my membership until I tell you to stop — and I’ll never pay a penny more than today’s membership rate — no price increases EVER.

Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.

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